Private Banking & Wealth Management
Private banking in Luxembourg: growth, consolidation and strategic positioning in a shifting world
Published on 26 February 2026
In the latest Wealth Management supplement of Paperjam, Yves Stein and Sandrine De Vuyst, respectively Chair and Vice-Chair of the ABBL’s Private Banking Group Luxembourg (PBGL), provide a detailed assessment of the sector’s trajectory. Beyond headline figures, the interview paints the picture of a financial centre navigating valuation concerns, geopolitical shifts and structural consolidation, while reaffirming Luxembourg’s core strengths: stability, predictability and ecosystem depth.
Summary
Strong performance, disciplined outlook
Luxembourg’s private banking sector recorded a 14% increase in assets under management in 2024, the strongest annual rise since 2007. Performance was supported by favourable market conditions and positive net new money.
Despite high equity valuations, Yves Stein rejects alarmism:
Luxembourg continues to position itself as a predictable, well-regulated and cooperative financial centre, qualities that matter even more when uncertainty rises.
Yves Stein
Chairman of the ABBL
He nevertheless points to areas requiring vigilance, including pockets of artificial intelligence-related exuberance and stretched valuations in certain segments.
Who is choosing Luxembourg?
Contrary to assumptions, 90% of private banking clients are European. In 2024, according to ABBL-KPMG-CSSF data, 90% of AUM originated from European clients, with Belgium, Germany and France accounting for roughly 20%.
This strong European anchoring contributes significantly to the sector’s resilience in times of global uncertainty.
At the same time, new dynamics are emerging. Yves Stein highlights renewed interest from Latin America, while the Middle East remains dynamic. Developments in Asia — particularly Singapore — are monitored closely, both as a source of inspiration and as competitive reference points.
There is currently a very specific Latin American wave, largely Brazilian. Many families are looking for a European hub for their financial activities. When comparing options, Luxembourg often stands out as Europe’s most international country.
Yves Stein
Chairman of the ABBL
Consolidation without loss of substance
The number of private banks in Luxembourg has declined over the past decade. However, AUM continues to grow.
For Sandrine De Vuyst, this reflects structural consolidation rather than erosion. She also stresses that Luxembourg must continue positioning itself as a centre with full ecosystem depth — not merely a booking centre.
We do not observe any relevant outflow of private banking clients. The reduction in the number of institutions is almost entirely a consolidation phenomenon. What matters is that banks themselves remain anchored here.
Sandrine De Vuyst
Vice-Chair of the ABBL’s Private Banking Group Luxembourg (PBGL)
In other words, consolidation is part of sectoral evolution, while substance and expertise remain firmly established in Luxembourg.
Geopolitics, supervision and collective positioning
The interview also addresses sensitive topics, including US-European relations and debates around potential centralisation of asset management supervision at European level.
Yves Stein underlines that the approach has remained consistent: Luxembourg defends the interests of the banking sector based on the nature of activities, not on the nationality of institutions. Dialogue across professional structures and working groups remains central to maintaining openness and stability.
Luxembourg is not sheltered from global geopolitical shifts. However, its predictability, regulatory robustness and culture of cooperation remain decisive advantages in a changing environment.
A collective voice for private banking
Through the PBGL, the ABBL provides a structured forum for institutions to address regulatory, operational and strategic developments collectively. This collaborative approach supports both the competitiveness of the sector and Luxembourg’s long-term positioning as a leading European wealth management hub.
The full interview is available here, in the March 2026 edition of Paperjam’s Wealth Management supplement.
Sandrine Roux
Secretary General, ABBL
Published on 26 February 2026